Journal of Supply Chain Management Systems

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Supplier Evaluation through Data Envelopment Analysis


Affiliations
1 Department of Mechanical Engineering, Wellfare Institute of Science, Technology and Management, Visakhapatnam, A.P, India
2 Department of Mechanical Engineering, Andhra University, Visakhapatnam, A.P, India
3 Sathavahana Ispat Ltd., Bellary, Karnataka, India
4 Department of Mechanical Engineering, Govt. Polytechnic, Visakhapatnam, A.P, India
     

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In this paper, a methodology is proposed for evaluating the efficiency and performance of the suppliers through Data Envelopment Analysis (DEA) technique. DEA is a multifactor productivity technique to measure the relative efficiency of the decision making units. Super Efficiency and Cross Efficiency methods are employed in this work to determine the efficiencies and the performance scores of the suppliers respectively. A numerical illustration is presented to demonstrate the proposed methodology. Twenty three suppliers are considered in the study. Each supplier has six inputs and five outputs. On the basis of super efficiency and cross efficiency scores, the suppliers are classified into different clusters. The suppliers' performance-efficiency score grid is developed, which helps the management to take effective decision in the selection of the suppliers of a company.

Keywords

Supplier Evaluation, Data Envelopment Analysis, Super Efficiency, Cross Efficiency
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  • Supplier Evaluation through Data Envelopment Analysis

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Authors

K. G. Durga Prasad
Department of Mechanical Engineering, Wellfare Institute of Science, Technology and Management, Visakhapatnam, A.P, India
K. Venkata Subbaiah
Department of Mechanical Engineering, Andhra University, Visakhapatnam, A.P, India
Ch. Venu Gopala Rao
Sathavahana Ispat Ltd., Bellary, Karnataka, India
K. Narayana Rao
Department of Mechanical Engineering, Govt. Polytechnic, Visakhapatnam, A.P, India

Abstract


In this paper, a methodology is proposed for evaluating the efficiency and performance of the suppliers through Data Envelopment Analysis (DEA) technique. DEA is a multifactor productivity technique to measure the relative efficiency of the decision making units. Super Efficiency and Cross Efficiency methods are employed in this work to determine the efficiencies and the performance scores of the suppliers respectively. A numerical illustration is presented to demonstrate the proposed methodology. Twenty three suppliers are considered in the study. Each supplier has six inputs and five outputs. On the basis of super efficiency and cross efficiency scores, the suppliers are classified into different clusters. The suppliers' performance-efficiency score grid is developed, which helps the management to take effective decision in the selection of the suppliers of a company.

Keywords


Supplier Evaluation, Data Envelopment Analysis, Super Efficiency, Cross Efficiency

References